Management Accounting MCQ Quiz - Objective Question with Answer for Management Accounting - Download Free PDF

Last updated on Jun 16, 2025

Latest Management Accounting MCQ Objective Questions

Management Accounting Question 1:

What is the duration of each CMA exam part?

  1. 2 hours
  2. 3 hours
  3. 4 hours
  4. 5 hours

Answer (Detailed Solution Below)

Option 3 : 4 hours

Management Accounting Question 1 Detailed Solution

The correct option is option 3

Additional Information:

  • 4 hours (3 hours for MCQs + 1 hour for essay section

Management Accounting Question 2:

What is the passing score for each CMA exam part?

  1. 400
  2. 500
  3. 360
  4. 300

Answer (Detailed Solution Below)

Option 3 : 360

Management Accounting Question 2 Detailed Solution

The correct option is option 3

Additional Information:

  • 360 out of 500

Management Accounting Question 3:

Which organization administers the US CMA certification?

  1. AICPA
  2. NASBA
  3. IMA
  4. CPA Board

Answer (Detailed Solution Below)

Option 3 : IMA

Management Accounting Question 3 Detailed Solution

The correct option is option 3

Additional Information:

IMA (Institute of Management Accountants)

Management Accounting Question 4:

Which of the following would be classified as direct labour? 
 

  1. Personnel manager in a company servicing cars 
  2. Bricklayer in a construction company 
  3. General manager in a shop 
  4. Maintenance manager in a company producing cameras 

Answer (Detailed Solution Below)

Option 2 : Bricklayer in a construction company 

Management Accounting Question 4 Detailed Solution

The correct option is option 2 
Additional Information:

  • Managers are not usually classified as direct labour.

Management Accounting Question 5:

Which of the following is usually classed as a step cost? 

  1. Supervisor’s wages  
  2. Raw materials  
  3. Rates  
  4. Telephone  

Answer (Detailed Solution Below)

Option 1 : Supervisor’s wages  

Management Accounting Question 5 Detailed Solution

The correct option is option 1

Additional Information:

  • Supervisor's wages are usually classified as a step cost because a supervisor may be responsible for supervising up to a specific number of workers. However, if output increases such that additional direct labour is required, then an extra supervisor will be required. Rates do step up in cost but that is in relation to time not output i.e. the rates may increase year on year. 

Top Management Accounting MCQ Objective Questions

Management Accounting Question 6:

Fast Co had 3,000 employees at the beginning of 20X8. At the end of 20X8 there were 3,500 employees. 120 employees resigned in the year and were immediately replaced. Additional employees were recruited for new jobs during the year.

What is the labour turnover rate to two decimal places?

  1. 3.69%
  2. 3.59%
  3. 2.78%
  4. 4.10%

Answer (Detailed Solution Below)

Option 1 : 3.69%

Management Accounting Question 6 Detailed Solution

Correct Answer: A 

Explanation: 

The labour turnover rate is calculated as follows:

Average no. of employees in period = (3,000 + 3,500) ÷ 2 = 3,250
Labour turnover rate = (Replacements ÷ Average number of employees in period) × 100%
= 120 ÷ 3,250 × 100% = 3.69% 

Management Accounting Question 7:

What is the duration of each CMA exam part?

  1. 2 hours
  2. 3 hours
  3. 4 hours
  4. 5 hours

Answer (Detailed Solution Below)

Option 3 : 4 hours

Management Accounting Question 7 Detailed Solution

The correct option is option 3

Additional Information:

  • 4 hours (3 hours for MCQs + 1 hour for essay section

Management Accounting Question 8:

What is the passing score for each CMA exam part?

  1. 400
  2. 500
  3. 360
  4. 300

Answer (Detailed Solution Below)

Option 3 : 360

Management Accounting Question 8 Detailed Solution

The correct option is option 3

Additional Information:

  • 360 out of 500

Management Accounting Question 9:

Which organization administers the US CMA certification?

  1. AICPA
  2. NASBA
  3. IMA
  4. CPA Board

Answer (Detailed Solution Below)

Option 3 : IMA

Management Accounting Question 9 Detailed Solution

The correct option is option 3

Additional Information:

IMA (Institute of Management Accountants)

Management Accounting Question 10:

Which of the following would be classified as direct labour? 
 

  1. Personnel manager in a company servicing cars 
  2. Bricklayer in a construction company 
  3. General manager in a shop 
  4. Maintenance manager in a company producing cameras 

Answer (Detailed Solution Below)

Option 2 : Bricklayer in a construction company 

Management Accounting Question 10 Detailed Solution

The correct option is option 2 
Additional Information:

  • Managers are not usually classified as direct labour.

Management Accounting Question 11:

Which of the following is usually classed as a step cost? 

  1. Supervisor’s wages  
  2. Raw materials  
  3. Rates  
  4. Telephone  

Answer (Detailed Solution Below)

Option 1 : Supervisor’s wages  

Management Accounting Question 11 Detailed Solution

The correct option is option 1

Additional Information:

  • Supervisor's wages are usually classified as a step cost because a supervisor may be responsible for supervising up to a specific number of workers. However, if output increases such that additional direct labour is required, then an extra supervisor will be required. Rates do step up in cost but that is in relation to time not output i.e. the rates may increase year on year. 

Management Accounting Question 12:

Which of the following best describes the primary purpose of a cost centre in an organization?

  1. To measure the profitability of different products
  2. To allocate revenues to different departments
  3. To control and monitor costs within a specific part of the organization
  4. To determine selling prices of products

Answer (Detailed Solution Below)

Option 3 : To control and monitor costs within a specific part of the organization

Management Accounting Question 12 Detailed Solution

Correct Answer: C

Explanation: 

A cost centre is used to track expenses in a specific area (such as a department or function) without directly linking it to revenue. Its main purpose is cost control and monitoring, helping managers manage spending efficiently.

Management Accounting Question 13:

A process produces two joint products, X and Y, with selling prices of $10 per litre and $20 per litre respectively. In a period, joint costs were $56,000 and finished output was:

Product X: 5,000 litres
Product Y: 2,000 litres

The sales value method is used to apportion joint costs.

What amount of joint costs should be apportioned to Product Y (to the nearest whole number)? 

  1. $26,000
  2. $20,188
  3. $24,889
  4. $28,425

Answer (Detailed Solution Below)

Option 3 : $24,889

Management Accounting Question 13 Detailed Solution

Corect Answer: C

Explanation:

Product X = 5,000 × $10 = $50,000
Product Y = 2,000 × $20 = $40,000
Total revenue = $90,000
$56,000 ÷ $90,000 × $40,000 = $24,889

Management Accounting Question 14:

A large retailer with multiple outlets maintains a central warehouse from which the outlets are supplied. The following information is available for Part Number SF525.

Average usage 350 per day
Minimum usage 180 per day
Maximum usage 420 per day
Lead time for replenishment 11–15 days
Re-order quantity 6,500 units
Re-order level 6,300 units

Based on the above data, what is the maximum level of inventory? 

  1. 5,250
  2. 6,500
  3. 10,820
  4. 12,800

Answer (Detailed Solution Below)

Option 3 : 10,820

Management Accounting Question 14 Detailed Solution

Correct Answer: C

Explanation:

Maximum = EOQ + ROL – (minimum inventory × minimum lead time)
Maximum = 6,500 + 6,300 – (180 × 11) = 10,820 units

Management Accounting Question 15:

The overhead absorption rate for Product Y is $2.50 per direct labour hour. Each unit of Y requires three direct labour hours. Inventory of Product Y at the beginning of the month was 200 units and at the end of the month was 250 units.

What is the difference in the profits reported for the month using absorption costing compared with marginal costing?

  1. The absorption costing profit would be $375 less
  2. The absorption costing profit would be $125 greater
  3. The absorption costing profit would be $375 greater
  4. The absorption costing profit would be $1,875 greater

Answer (Detailed Solution Below)

Option 3 : The absorption costing profit would be $375 greater

Management Accounting Question 15 Detailed Solution

Correct Answer: C

Explanation:

Overhead absorption rate per unit = $2.50 × 3 = $7.50
Change in inventory = 200 – 250 = 50 units
Difference in profits = 50 × $7.50 = $375
Inventory levels are increasing therefore absorption costing profits are greater than marginal costing profits.
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